The Eurasian Development Bank (EDB) plans to introduce Islamic financing instruments in 2025. Ruslan Dalenov, Deputy Chairman of the EDB Management Board, announced in Almaty.
According to him, the EDB is looking for new opportunities to expand its product line, so the direction of Islamic finance has been developed. By introducing them, the EDB can attract additional investments from the international market to the countries of Central Asia in the amount of up to $1 billion per year.
A steering committee for the development of Islamic financing has already been formed, and an international consultant has been engaged. The Islamic Development Bank is also helping to develop the area.
As Ruslan Dalenov told, the EDB, in accordance with its international status, has the ability to simultaneously provide conventional and Islamic financing. For this purpose, active work is underway to introduce a new product. In macroeconomic terms, these are also new investments. The states of Central Asia will be able to take advantage of the new type of financing by attracting investments from large markets in the Persian Gulf, East Asian countries and others.
For businesses, these are opportunities to finance their projects.
In turn, the Chairman of the Management Board of the EDB Nikolai Podguzov noted that Islamic finance is a dynamically growing market, and there is demand for it in the Central Asian region.
«We have one or two pilot projects planned for 2025 in this area. We want to finance several projects according to Islamic principles. This will probably be up to $10 million. We are some of the pioneers in our region. I hope that both governments and financial institutions of our countries will also pick up this work together with us, and we will get more serious dynamics,» he said.
